Is Bridgetown Holdings Ltd. (Hong Kong) overvalued or undervalued?

As of 6 December 2023, Bridgetown Holdings Ltd. has moved from a grade of "does not qualify" to "risky," indicating a significant downgrade in its valuation outlook. The company is currently assessed as overvalued given its financial metrics, with a price-to-book value of 0.45 and an EV to EBITDA ratio of 0.65. Notably, the return on equity (ROE) stands at a concerning -80.38%, reflecting severe losses and negative capital employed.
In comparison to its peers, Bridgetown's valuation appears unfavorable. For instance, M3-Brigade Acquisition III Corp. is rated "very attractive" with a P/E ratio of 3.7708, while Flame Acquisition Corp. is classified as "does not qualify" with a P/E ratio of -6.8102. The stark contrast in these ratios highlights the challenges faced by Bridgetown Holdings. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -37.06% compared to a positive return of 2.44% for the index.